Buying a Foreclosure – 8 Things You Must Know

Home-buyers are generally lured by the large discounts offered on a foreclosed property. 

However, the conjecture about foreclosure is pretty absurd. 

On the flip side, the large discounts can turn into a prodigal expense! Many of you might be frowning on reading this, but sadly it’s the truth! 

Buying a foreclosed property may seem ideal to many people. 

However, you should be aware of the added expenses post-buying. 

So before grabbing that sweet deal, there are certain things you must know. Let’s explore the top 10 things to know before buying a foreclosure:

1. Schedule a home inspector:

Home inspection before buying a home? Well, yes! It might sound trivial at first, but a home inspection will reveal hidden costs. 

Foreclosed homes are abandoned by owners. They are neglected for months and hence fall short on maintenance. 

Therefore, a home inspection will unveil maintenance costs which can be a good trump card for bargaining. 

It is recommended to schedule an experienced home inspector and conduct property inspection. 

After a careful assessment, you can calculate the expenses and decide whether to stick with the deal or walk away!

2. Dig out Home’s history:

Some hasty buyers neglect to investigate about property’s history. Such negligence can land you in big trouble. 

Try to learn about any maintenance or repair activities conducted on the property. 

You can contact previous homeowners or the bank to learn about history.

3. Change locks:

If you’re purchasing a foreclosed home, property securing is a critical step. Many foreclosures has a Master key which is used by real estate agents, contractors, etc. 

To prevent access, it is crucial to install locks. This step will ensure your safety in the house. 

4. Winterize the property:

Winterizing will protect the house from winter damage. Since foreclosures are unoccupied for several months, make sure to drain the pipes, tanks and toilets completely. 

Add anti-freezing agent to prevent freezing of water. Switch off all the utilities and conduct a pressure-check. 

5. Identify Plumbing Issues:

Plumbing leaks can cause a severe problem. 

Imagine the expense incurred for replacing rotten wood floors and walls! If you spot any plumbing problem, fix it right away. 

Check for broken pipes & faucets and inspect ceilings for molds or mildew. 

6. Look for Preventative Maintenance:

Many homeowners fail to maintain their property on a regular basis. 

Eventually, when the property is put out on sale, the buyer has to pay for damage repairs. 

Therefore, it is vital to look for deferred maintenance. It may involve cleaning gutters & downspouts, yard maintenance, etc.

7. Check for structural damage:

Structural damage will make you shell out loads of money. Make sure to check for any structural damage to the property. 

If you find roof damage or cracks on walls, decide whether the house is worth the price or not.

8. Inspect HVAC Systems:

Investigate the HVAC system for dirt and debris. 

When dirt and debris accumulate in a duct pipe, it can ruin an entire HVAC system. It is advisable to vacuum dirt and debris away from the duct pipes. 

You may also need to repair any broken or damaged parts.

Hopefully, you will keep a track of the above things before buying a foreclosed property.